Aerial view of Fiesta Mall shown during demolition on Google Earth, 9-25-2023.
The Fiesta Mall, once a bustling retail hub in Mesa, Arizona, has been a focal point of redevelopment speculation since its closure and subsequent demolition. Located at the intersection of Alma School Road and Southern Avenue, the 80-acre site has sat largely vacant in recent years, prompting interest from developers, city officials, and the public. As of March 12, 2025, here’s the latest investigative update on the Fiesta Mall site, drawing from available news, historical context, and ongoing developments.
Background and Closure
Fiesta Mall opened in 1979 and thrived for decades as a key shopping destination in Mesa, featuring major anchors like Macy’s, Sears, and Dillard’s. However, by the early 2000s, competition from newer retail centers like Mesa Riverview and the rise of online shopping led to a steady decline. The mall’s final stores shuttered in 2017, and the property was sold to a development firm with plans for revitalization. Demolition began in 2018, leaving the site a blank slate for future projects.
By the early-1990s, Fiesta Mall was at the zenith of its success. It was the commercial hub of the East Valley and ranked within the top 15 percentile of regional malls in the nation in sales. A survey conducted by The Arizona Republic and The Phoenix Gazette in 1992 identified the mall as the preferred shopping center for most Valley residents, and in 1993, as many as a dozen companies were vying to purchase Fiesta. L&B Real Estate Counsel of Dallas, a commercial real-estate investment firm, bought the mall for $124.3 million in December 1993. Citing continuing robust population growth in the southeast Valley, the owners announced new plans for a major expansion that again included a fifth anchor store.
Fiesta Mall started showing early signs of trouble in terms of shrinking customer traffic in the late 1990s. When Arizona Mills opened in the neighboring city of Tempe in 1997, mall officials saw an initial decline in shoppers. Fiesta management said the change was short-lived after initial interest in the new mall peaked. When Chandler Fashion Center opened on October 17, 2001, about eight miles away from Fiesta, the mall suffered its first sustained revenue drop due to a competing mall.
Recent Developments
Mesa, AZ—As of March 12, 2025, the sprawling 80-acre site of the former Fiesta Mall in Mesa, Arizona, is undergoing a transformative redevelopment, marking a pivotal moment for the East Valley’s economic and cultural landscape. Once a bustling shopping hub that opened in 1979 and shuttered in 2018 after years of decline, the site—now rebranded as Fiesta Redefined—is being reborn as a vibrant, mixed-use development, according to recent updates from city officials and developers. The demolition of the abandoned mall, which began in July 2023 and was completed in 2024, has paved the way for an ambitious vision: up to 4,000 new apartments, homes, retail spaces, restaurants, office buildings, hotels, and entertainment venues, as outlined by Verde Investments and Mesa’s redevelopment team.
The most significant update in the Fiesta Mall saga came in early March 2025, when reports surfaced that the site’s developer—identified as Verde Investments, owned by Ernest Garcia II, the billionaire father of Carvana CEO Ernest Garcia III—purchased the remaining 34 acres of the property for $24 million. This acquisition, reported by *The Arizona Republic* on March 7, 2025, consolidates ownership of the full 80-acre parcel, signaling potential momentum for redevelopment. Previously, the site had been split among multiple stakeholders, complicating plans.
Ernest Garcia III: Holds about 18% of Carvana’s outstanding shares, making him the second largest individual shareholder and CEO. His stake, valued at roughly $3.5–$4.5 billion in early 2025 (based on current stock price and previous net worth estimates), is a cornerstone of his fortune and Carvana’s control structure.
Fiesta Redefined developers Verde Investments Inc. closed on the sale of the remaining 34 acres of land for nearly $24 million in February.
The fate of the 80 acres that once housed the 1.2-million-square-foot Fiesta Mall has long been a question for Mesa residents and February’s sale solidifies Verde Investment’s commitment to the area. For decades, Fiesta Mall was the go-to retail center for East Valley residents before it closed in 2018.
Verde Investments, a development firm owned by billionaire Ernest Garcia II, has slowly acquired the parcels of Fiesta Mall over several years.
Garcia is one of the 400 richest people in America and the richest in Arizona, according to Forbes. In 2024, he ranked 67th on the national list. He owns approximately 28% of Carvana stock, the online used car and auto loans platform that went public in 2017. His son founded the company as a subsidiary of DriveTime Automotive, which Garcia owns. DriveTime is the fourth-biggest used car retailer in the U.S., according to Forbes.
Who is Earnest Garcia II?
Ernest Garcia, II is the biggest shareholder of Carvana, an online platform for selling used cars and making auto loans that conducted an IPO in 2017.
Ernest Garcia II, born on May 1, 1957, is an American billionaire businessman renowned for his dominance in the used car sector. As the founder and owner of DriveTime (originally Ugly Duckling), he revolutionized subprime auto financing, taking the company public on NASDAQ in 1996. Garcia is also a major shareholder in Carvana, the online used car retailer co-founded with his son, Ernest Garcia III. Despite a felony bank fraud conviction in 1990 related to the Lincoln Savings and Loan collapse, which led to three years of probation, he rebuilt his fortune, amassing a net worth of $2.5 billion by 2024, per Forbes. Residing in Tempe, Arizona, Garcia channels his wealth through the Garcia Family Foundation, focusing on education and human services in the region.
The project, led by Tempe-based Verde Investments—owned by Ernie Garcia II, founder of DriveTime—has spent years acquiring the nine parcels comprising the site, collaborating closely with Mesa’s leaders to create a “walkable, healthy neighborhood” that prioritizes pedestrians over vehicles. Recent city council meetings and planning board discussions, as reported by KTAR.com, have focused on adaptive reuse strategies, with economic development director Jaye O’Donnell and urban transformation manager Jeff McVay emphasizing the site’s potential to address Mesa’s housing crisis and stimulate job growth. A completed traffic study, submitted for city approval, signals progress toward zoning changes and construction. However, timelines remain fluid, with an estimated start date of 18–24 months and a full redevelopment spanning up to a decade.
Fiesta Reimagined—the grand redevelopment of the long-vacant Fiesta Mall site at Southern Avenue and Alma School Road in Mesa—has taken the next step toward becoming reality, as developer Verde Investments, Inc. has filed its formal rezoning application with the City of Mesa.
Demolition of the former mall is approximately two-thirds complete, according to an announcement from Verde.
The announcement said, “Verde’s application seeks to shift the site’s zoning from its current Limited Commercial designation to Infill District-2. This new zoning would remain consistent with the Mesa 2040 General Plan while offering Verde and the City maximum flexibility as the redevelopment process evolves.”
According to news reports, as an infill district, the project could be subject to alternative fees and a streamlined review process.
Verde has begun an extensive outreach program to build support among area residents.
According to the submission, plans include 4,000 multifamily units, 750KSF of office, 520.5KSF of open space and 1.1MSF of commercial uses. The Alma School Road frontage will be reserved for commercial. Maximum building heights are planned for up to 120 feet, marking a significant addition to the Mesa skyline.
Architect Nelsen Partners’ plan includes features to enhance pedestrian and cycling friendliness, including paseos separated from vehicle traffic and clustered commercial buildings that will add to pedestrian convenience and accessibility.
Buildout of the entire site could take as long as 10 years, according to Verde. Construction is hoped to begin within 18-24 months.
Verde Investments spent years acquiring the nine parcels comprising the old mall site. Now, in collaboration with Mesa’s leaders and staff, we are revisioning, redeveloping, and redefining this abandoned icon for a new day.
Our goal? To create a vibrant mixed-use Master Plan that includes multiple residential options, office space, retail shopping, restaurants, hotel partners, entertainment venues, and commercial development.
Walkable, sustainable, and teeming with open space, Fiesta Redefined promises to be a 21st century gem to make Mesa, its leaders and residents proud.
The demolition and earthwork at the abandoned mall is underway. The zoning process and the needs of the marketplace will dictate the timing of future development. A fair estimate for the beginning of construction would be 18 to 24 months.
Again, the timeline largely will be dictated by the needs of the marketplace and the zoning process that lies ahead. A comprehensive redevelopment such as Fiesta Redefined could take a decade to come to completion.
However, challenges loom large
Residents and businesses have raised concerns about traffic congestion, parking, and the scale of the project, echoing the delays that Homart Development faced in the 1970s. Environmental groups are pushing for sustainable designs, while some critics question whether the development will truly benefit low-income residents, given the focus on mixed-use, upscale components. Mesa’s planning and zoning board is set to review these issues, with public hearings scheduled for late 2025, according to city announcements.
Mesa city officials have not released statements since the sale, and no planning documents or permits have surfaced publicly as of March 12, 2025. The lack of transparency suggests that negotiations or conceptual planning may be underway behind closed doors. Given Verde Investments’ real estate focus and the Garcia family’s business interests, possibilities could range from a corporate campus to a mixed-use development with housing, shops, and offices—though nothing is confirmed.
Community Sentiment and Next Steps
KJZZ.com, December 10, 2024: The former site of Mesa’s Fiesta Mall is one step closer to redevelopment. Mesa City Council has approved a rezoning application that will allow new housing and retail to be built at the site.
Local sentiment, as gauged from historical X posts and news comments, reflects a mix of nostalgia for the old mall and eagerness for revitalization. Residents have long called for a project that boosts Mesa’s economy and identity, especially as the city grows into one of Arizona’s largest. The Fiesta Mall site’s redevelopment could be a linchpin for the East Valley, but its success hinges on aligning with community needs and navigating zoning or voter approval processes.
This investigation remains ongoing. Key questions linger: What does Verde Investments envision? To refine this update, further outreach to Mesa’s planning department or Verde Investments could yield clarity, though neither has responded to recent media inquiries. For now, the Fiesta Mall site stands as a symbol of potential—purchased, consolidated, and poised for transformation, yet still shrouded in uncertainty as of March 12, 2025.
Investigative sources, including AZFamily.com, reveal that Nelson Partners, the architect firm behind the project, brings experience from similar Southwest redevelopments like Paradise Valley Mall. Yet, questions persist about funding transparency and community input, with some stakeholders alleging limited access to decision-making processes. Verde Investments insists it will finance the entire project, including ongoing demolition and stakeholder outreach, but details on exact costs and timelines remain scarce, fueling speculation.
As construction nears, the site’s transformation promises to redefine Mesa’s identity, but it also tests the city’s ability to balance growth with inclusivity. For now, the former Fiesta Mall stands as a blank slate—an 80-acre symbol of potential, poised to either uplift or divide the community. This investigative update will continue to monitor developments, ensuring transparency as Mesa charts its future. Stay tuned for further reports on this East Valley milestone.
In the hearts of many East Valley residents, Fiesta Mall was never second-rate. While the now-demolished Mesa retail landmark may not been as large or had the cultural cachet or iconic status of Metrocenter or Paradise Valley Mall, it was a favorite shopping destination and gathering spot for generations of suburbanites.
Anchored by major department stores like Sears, The Broadway and (eventually) Dillard’s, the mall thrived in the ’80s and ’90s, widely considered the heyday of mall culture. It hosted more than just bargain-hunting shoppers and bored teens, though.
Fiesta Mall also served as a cultural hub and even hosted concerts. In 2004, pop star Avril Lavigne performed a concert for a packed crowd of more than 3,000 people inside the mall. Later that year, the Zumiez Couch Tour staged motocross and skateboard stunts and a performance by Sum 41 in the parking lot for thousands of onlookers.
The lone Fiesta Mall sign stands as a silent sentinel amidst the rubble, marking the final remnant of a once-thriving commercial hub that anchored the East Valley and ranked in the top 15 percentile of U.S. regional malls for sales in the early 1990s, now poised for a transformative redevelopment in the near future.
The former Fiesta Mall site in Mesa, Arizona, now a vast, dusty lot enclosed by cyclone fences, stands as a silent testament to the East Valley’s transformation, awaiting its rebirth as Fiesta Redefined.
A solitary high-rise looms above the dirt and fences of the former Fiesta Mall site in Mesa, Arizona, its occupants gazing out with hope toward a vibrant future—where this 80-acre redevelopment promises new apartments, shops, and green spaces, transforming the skyline by 2035.
And now for the “Fly in the Ointment,” Part 1
Analysis of the Hindenburg Research Report on Carvana and Speculation on Its Impact on Fiesta Redefined and Verde Investments
The Hindenburg Research report on Carvana, published on August 29, 2024 (available at https://hindenburgresearch.com/carvana/), is a short-seller report alleging financial misconduct, accounting manipulation, and overvaluation of Carvana Co. (NYSE: CVNA). This analysis evaluates the report’s key findings, assesses their credibility based on the provided web results and general financial context, and speculates on potential impacts on the Fiesta Redefined redevelopment project in Mesa, Arizona, and Verde Investments, the parent company led by Ernest Garcia II. The speculation is grounded in the report’s claims, Carvana’s financial condition, and the interconnected roles of the Garcia family and Verde Investments as of March 13, 2025.
Summary of the Hindenburg Research Report on Carvana
Key Allegations:
In reaction to Hindenburg’s claims, JP Morgan analysts stated that their reviews of Carvana conducted in 2019 and 2022 did not identify any significant concerns, especially concerning gain-on-sale accounting practices and the company’s underlying free cash flow generation.
Accounting Manipulation:Hindenburg claims Carvana engaged in accounting practices to inflate reported income, including $800 million in loan sales to a suspected undisclosed related party, potentially linked to the Garcia family or DriveTime (owned by Ernest Garcia II). The report suggests these transactions obscure Carvana’s true financial health. Lax Underwriting and Risk:The report alleges Carvana’s subprime auto loans have high default risks, masked by aggressive accounting and loan sales, threatening long-term profitability.
Overvaluation: Carvana is described as “exorbitantly valued,” trading at an 845% higher sales multiple and 754% premium on forward earnings compared to peers like CarMax and AutoNation, despite underlying financial weaknesses. Insider Transactions:The report highlights billions in stock sales by insiders, including Ernest Garcia II ($1.4 billion since April 2024) and Ernest Garcia III, suggesting they may be offloading shares before a potential collapse.
SEC Investigations: Hindenburg cites two undisclosed SEC investigations, one ongoing, raising concerns about regulatory scrutiny and potential penalties.
Carvana’s Response: The report notes Carvana’s denial of these allegations, asserting its financial reporting complies with GAAP standards and that loan sales are standard industry practice. Carvana’s stock dropped 5.4% on August 29, 2024, but rebounded to $186.85 per share by March 6, 2025, per MacroTrends (web:0), indicating market resilience or skepticism toward Hindenburg’s claims.
Credibility Assessment:
The report’s credibility is tempered by its short-seller bias, as Hindenburg profits from a decline in Carvana’s stock price, per web:1. However, its detailed research—4 months, 49 interviews, and document reviews—lends weight to its findings, though Carvana’s rebuttals and 2023–2024 profitability (e.g., first annual profit, $3.655 billion Q3 2024 revenue, web:3) suggest some resilience.
The web results (e.g., Reuters, Cbonds) show Carvana’s recovery since 2022, but ongoing risks (high interest rates, inventory challenges) align with Hindenburg’s concerns, making the report a potential red flag for investors and stakeholders.
Speculative Impact on Fiesta Redefined and Verde Investments
Fiesta Redefined, the redevelopment of the former Fiesta Mall site in Mesa, Arizona, is led by Verde Investments, owned by Ernest Garcia II, Carvana’s founder and a major shareholder. Verde’s financial health and Garcia’s personal wealth, heavily tied to Carvana, could influence the project’s future. Here’s how the Hindenburg report might impact Fiesta Redefined and Verde Investments, based on the report’s allegations and the broader context:
Financial Strain on Verde Investments: Speculation:If Hindenburg’s allegations are substantiated—particularly regarding Carvana’s accounting manipulation and overvaluation—Verde Investments could face financial strain. Garcia II’s net worth ($2.5 billion in 2024, per Forbes, web:0) and Verde’s resources are heavily tied to Carvana’s stock performance. A significant drop in Carvana’s stock (e.g., due to SEC investigations or investor sell-offs) could reduce Garcia II’s liquidity, potentially delaying or scaling back Fiesta Redefined’s $1 billion+ investment. The report’s mention of $1.4 billion in Garcia II’s stock sales since April 2024 (web:1) suggests he may be preparing for volatility, but a deeper crash could limit Verde’s funding capacity. Evidence:Fiesta Redefined’s timeline (construction start in 18–24 months, full development up to 10 years, web:4) relies on Verde’s ability to finance the project independently, per AZBEX (web:3). Carvana’s financial instability could strain Verde’s balance sheet, especially if investors pull back due to Hindenburg’s concerns.
Investor Confidence and Funding Challenges: Speculation:The Hindenburg report could erode investor confidence in Verde Investments and its projects, including Fiesta Redefined. Institutional investors (60–65% of Carvana’s ownership, per earlier analysis) and potential Fiesta Redefined partners might hesitate, fearing association with Carvana’s alleged financial risks. This could delay partnerships, increase borrowing costs, or force Verde to seek alternative funding, potentially compromising the project’s scope (e.g., 4,000 housing units, retail, and open spaces, web:1, web:4). Evidence:Mesa’s city council and planning board are monitoring Fiesta Redefined’s progress, with public hearings scheduled for late 2025 (web:1). Any perception of financial instability at Verde could raise concerns among stakeholders, especially given traffic and community input challenges already noted in AZFamily.com (web:2).
Regulatory and Legal Risks: Speculation:If the SEC investigations mentioned in the report escalate, Carvana could face fines, penalties, or reputational damage, indirectly impacting Verde Investments. Garcia II’s felony bank fraud history (1990, per Forbes, web:0) could amplify scrutiny, potentially delaying Fiesta Redefined approvals or attracting lawsuits from Mesa residents or businesses. This might force Verde to divert resources from the project to legal defense, slowing construction or altering plans. Evidence:The report’s claim of ongoing SEC probes (web:1) aligns with Carvana’s past regulatory challenges, per Reuters (web:3). Mesa’s focus on transparency (web:4) could intensify if Carvana’s issues taint Verde’s credibility, affecting public support for Fiesta Redefined.
Community and Economic Implications for Mesa: Speculation:Fiesta Redefined’s promise to address Mesa’s housing crisis and stimulate economic growth (web:1, web:2) could be jeopardized if Carvana’s financial troubles undermine Verde’s ability to deliver. Residents and businesses in Mesa, Gilbert, and Chandler might oppose the project, fearing it could become an economic liability rather than a benefit. This could lead to protests, legal challenges, or scaled-back plans, altering the project’s walkable, sustainable vision. Evidence: Local concerns about traffic, parking, and inclusivity (web:2, web:4) are already present. If Carvana’s alleged issues fuel skepticism, Mesa’s planning board might impose stricter oversight or demand guarantees, delaying the 18–24 month construction timeline.
Opportunities for Resilience: Speculation:If Carvana successfully refutes Hindenburg’s claims and maintains profitability (e.g., Q1 2025 retail unit growth, web:3), Verde Investments could emerge stronger, reinforcing Garcia II’s commitment to Fiesta Redefined. Carvana’s stock recovery to $186.85 per share (web:0) suggests market confidence, potentially stabilizing Verde’s finances and accelerating the project. Garcia’s history of navigating financial crises (e.g., post-1990 conviction, web:0) indicates resilience, which could bolster Fiesta Redefined’s progress. Evidence: Carvana’s 2023 profit, debt reduction, and 31.81% revenue growth in Q3 2024 (web:3) demonstrate recovery, supporting Verde’s ability to fund Fiesta Redefined independently, per AZBEX (web:3).
Overall Speculation
The Hindenburg report poses a significant risk to Fiesta Redefined and Verde Investments, primarily through financial, investor, and regulatory pressures on Carvana and the Garcia family. If the allegations lead to a Carvana stock crash, Verde’s funding for Fiesta Redefined could falter, delaying construction or scaling back its ambitious scope. However, if Carvana maintains its recovery trajectory and refutes the claims, Verde could leverage its financial stability to push forward, potentially strengthening community trust in Mesa. The interconnected nature of Carvana’s performance and Verde’s resources means that Fiesta Redefined’s future hinges on Carvana’s ability to weather this scrutiny in 2025. Mesa’s stakeholders, including residents and city officials, will likely monitor developments closely, as the project’s success could define the East Valley’s economic landscape for decades.
Reached by PYMNTS, a Carvana spokesperson said in an emailed statement that Hindenburg’s report is “intentionally misleading and inaccurate.”
“In the 7 years since our IPO, Carvana has been one of the most heavily researched public companies,” the statement said. “The arguments in today’s report are intentionally misleading and inaccurate and have already been made numerous times by other short sellers seeking to benefit from a decline in our stock price. We plan to stay focused on executing our plan for another great year in 2025.”
And the “Fly in the Ointment,” Part 2
Carvana Shareholder Lawsuit Over $600 Million Share Issuance—Delaware Court Battle Intensifies
A high-stakes derivative lawsuit against Carvana Co. (NYSE: CVNA) continues to unfold in the Delaware Court of Chancery, challenging a controversial $600 million share issuance in 2021 to favored insiders, including CEO Ernest Garcia III and his father, Ernest Garcia II, Carvana’s controlling shareholder, per Block & Leviton’s litigation summary and court documents. Boston-based law firm Block & Leviton, serving as co-lead counsel alongside other firms, represents Carvana stockholders who allege the issuance was a conflicted transaction, unfairly benefiting the Garcia family at the expense of other shareholders.
The lawsuit, filed as In Re Carvana Co. Stockholders Litigation, C.A. No. 2020-0415-KSJM, gained traction on June 30, 2022, when Chancellor Kathaleen St. J. McCormick denied motions to dismiss filed by Carvana and Garcia III, ruling that the plaintiffs had sufficiently alleged breaches of fiduciary duty and corporate waste, according to web:3. This decision allowed the case to proceed to the fact-discovery stage, where both sides are now exchanging documents, deposing witnesses, and gathering evidence to support their claims, per Delaware court records and legal updates on Block & Leviton’s website.
Investigative sources, including court filings and financial reports, reveal that the share issuance allegedly diluted other shareholders’ stakes while enriching the Garcias, who together control a significant portion of Carvana—estimated at 25–30% insider ownership as of 2025 (per earlier analysis). Critics argue the transaction, executed during Carvana’s 2021 stock surge (peaking at $370.10 per share, was designed to consolidate the Garcia family’s control amid Carvana’s rapid growth, raising questions about transparency and fairness. Block & Leviton contends the issuance violated Delaware corporate law, which requires directors to act in the best interests of all shareholders, not just insiders, as noted in their litigation overview.
Carvana and the Garcias have denied wrongdoing, asserting the share issuance was a legitimate capital-raising strategy to fund expansion during a period of high demand for used cars, per Reuters. However, the case’s progression to discovery has intensified scrutiny, especially following Hindenburg Research’s 2024 short-seller report and a 2025 open letter from Man vs Debt, both questioning Carvana’s financial practices and insider transactions, including Garcia II’s $1.4 billion in stock sales since April 2024. These developments could bolster the plaintiffs’ case, suggesting a pattern of self-dealing, though Carvana maintains its actions comply with GAAP and fiduciary standards.
As of March 2025, the litigation remains in the fact-discovery phase, with no trial date set, per Delaware court dockets. Legal experts, including those at Cbonds, suggest the case could take years to resolve, given the complexity of derivative actions and Carvana’s high-profile status. If successful, the plaintiffs could seek damages, rescission of the share issuance, or governance reforms, potentially impacting Carvana’s stock ($186.85 per share on March 6, 2025, and the Garcia family’s control. For Mesa, Gilbert, and Chandler, AZ, where Carvana operates hubs and Ernest Garcia II leads Verde Investments (Fiesta Redefined), the outcome could ripple into local economic confidence, per AZBEX.
This update will continue monitoring the litigation, Carvana’s financial health, and its broader implications for investors and the East Valley community. Stay tuned for further developments in this closely watched corporate battle.
